(DOUBLE BLIND PEER REVIEWED INTERNATIONAL JOURNAL)

(ISSN : 0970 – 9029)

Progress and Prospects of Financial Inclusion in India

Journal Name:
Journal of Accounting and Finance
Volume:
Vol. 33 - No. 1
Authors:
Author Name Organization Designation
Dr Sandeep Kumar VIG , Gurugram, Haryana, India Asst Professor
Abstract:

Financial inclusion is considered as an effective means to sustainable economic growth, and is intended to ensure that each citizen of the country is able to use their earnings as a national financial resource for redeployment in productive sectors of the economy. Such pooled financial resources can be channelized to develop enterprises, fueling the nation's progress. While inclusive banking began, in spirit, with the nationalisation of banks in 1969 and 1980 in India, the real thrust on financial inclusion (FI) came in 2005 when the Reserve Bank of India (RBI) highlighted its significance in its annual policy  statement of 2005-06. It urged banks to work towards reaching out to the masses, offering banking services down to the hinterland. RBI began to persuade banks to include FI as a business objective. Accessibility of timely, adequate and transparent credit from formal banking channels will  boost the entrepreneurial spirit of the masses to increase outputs enhancing prosperity of the nation. Adequate banking facilities will ensure distribution of government benefits and subsidies through direct benefit transfers to the beneficiaries' bank accounts rather than subsidized products and cash payments. This study is based on secondary data with aim of analyzing the progress and prospects of financial inclusion in India.